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Return to the list of my pages written in English about the two envelopes problem
This page is too old.
So please see the page "An outline of the Two Envelopes Problem" on this site instead.
Last edition 2017/04/13 20:38:15
First edition 2014/06/28

Theory of "E = (1/2)2a + (1/2)a" on The Two Envelope Paradox
– Had the illusion of objective expectation made them advocate such a theory? –

On February 7, 2016 ,this page was totally revised and the title of this page was changed.

Previous title of this page
Inconsistent Variable Theory on The Two Envelope Paradox
– Can an inconsistent variable symbol be the cause of the paradox? –

Caution
I who am a Japanese wrote this page in English, but I am not so good at English.

Introduction

Contents

The process through which the Two Envelope Paradox arise

The process through which the Two Envelope Paradox (Exchange Paradox) arise is as follows. ↑ It was revised on February 8, 2015. March 3, 2016.

Mathmatical resolution of the Two Envelope Paradox

The mechanism of this paradox is disappointingly simple.

We forget the odds of the pair (x/2 , x) , and the odds of the pair (x , 2x).
That is why we thoughtlessly assign 1/2 to the probabilities of the events which appear in the calculating formula of the expected amount of money. (This sentence was revised on February 27, 2016.)

This is a kind of probability illusion called "Base Rate Fallacy", and it is the cause of the two envelope paradox.


(This figure was added on September 20, 2014, and was moved here on March 14, 2015.)

Following figure is an explanation of correct calculation of probability.


(This figure from a companion page "An outline of the 'Two envelopes problem'" was added on February 28, 2016.)

Note:
Some people think that an improper application of "the principle of insufficient reason" is the cause why we assign a probability 1/2 to the event that x is the lesser amount and the event that x is the greater amount on the same condition that the amount of money in the chosen envelope is x.
But can we continue believing the probability when we find a paradox after we apply such a principle?
↑ It was revised on May 5, 2015, and on February 11, 2016

The equation (1) should be corrected like this.

e = (some probability p) (x/2) + (1 − p) 2x = (some rate r)x

Even if the opposite envelope is more favorable for a value of the amount of money in the chosen envelope, there is no wonder.
And if the opposite envelope is favorable for a value of the amount of money in the chosen envelope, the opposite envelope must be unfavorable for some value of the amount of money in the chosen envelope.
So the equivalence of the two envelopes are kept.
↑ These sentences were added on April 5, 2016, and were revised on April 6, 2016.

There remains no paradox.
Only mathematical problems remain. ( → Some example)

Using conditional expectation, some mathematicians proved the equivalence of the two envelopes.
And I also did it on February 2016.
Please see a companion page "Two methods for the proof of the equivalence of the envelopes of the two envelopes problem".

Inconsistent variable theory for the Two Envelope Paradox

To my suprise some people don't think so.

They explain the cause of the paradox as follows.

We forget that the value of x in "other = x/2" and the value of x in "other = 2x" are different, and we use same variable symbol for them in "E = (1/2)x/2 + (1/2)2x" .
The variable symbol x in the equationis used inconsistently.

In the following sections,  I call such a opinion 'Inconsistent variable theory' or IVT.


(This figure was added on September 20, 2014, and revised on May 4,2015)

Not three amounts theory for the Two Envelope Paradox

I found that some other people advocate similar but different opinion.

They explain the cause of the paradox as follows.

There are only two envelopes. Therefore it is wrong to think of three amounts x/2, x, 2x.

Or they explain the cause of the paradox as follows.

The pair of amounts (x/2, x) and the pair of amounts (x, 2x) belong to different situations (different games, different worlds). Therefore the expectation formula should not contain x/2 and 2x simultaneously.

In the following sections,  I call such a opinion  'Not three smounts theory'.

Mystery of the theory of "E = (1/2)2a + (1/2)a" is more mysterious than the two envelope paradox

This section was added on January 10, 2016.

I have been interested about the mind of advocators of the theory of "E = (1/2)2a + (1/2)a".

Had they felt the standard paradox of the two envelopes problem and resolved another paradox?
Had they felt no paradox and resolved a fictitious paradox?
Had they felt a nonstandard paradox and resolved it?  (←Added on April 6, 2016)

The advocators of the theory of "E = (1/2)2a + (1/2)a" are very minor, and I have not found articles which discusses about the mind of them.  But I cannot stop thinking about their mind.

The two interpretations of the problem

Usually the problem statement is interpreted like this.



But it appears that the followers of IVT interpret the problem like this.

Corresponding Mental Models

The former interpretation corresponds with this mental model.



In the following sections , the people with this mental model are called 'DoublePairian'.



The latter interpretation corresponds with this mental model.



In the following sections , the people with this mental model are called 'SinglePairian'.

(Note : Some theory says that people may create another mental model which is similar to the SinglePairian's mental model".  Such people should be called "LesserOrGreaterian".)

Two 'Two Envelope Problems'

'The Two Envelopes problem' for the SinglePairians and 'The Two Envelopes Problem' for the DoublePairians differ widely from each other.
Using mathematical notation, we can demonstrate the difference of the two problems.


Let x and y be the amounts in the envelope selected by you and the amount in the another envelope respectively.
Let X and Y be random variables which take x and y as their value respectively.
Let P be a random variable which takes the pair of amounts in the envelopes as it's value.
Let a be the lesser amounts in the two envelopes.

the DoublePairian's problem
(mathematicians prefer this)
the SinglePairian's problem
(philosophers prefer this)
the condition on which the expectation is calculated the amount of the envelope first selected by you the pair of the amount
pairs of the amount two pairs
(x/2, x) and (x, 2x)

x is the amount of the selected envelope
one pair
(a, 2a)
what are compared
in the Closed version Problem
random variable E(Y|X)
vs
random variable X
conditional expectation E(X|P=(a, 2a))
vs
conditional expectation E(Y|P=(a, 2a))

↑ revised on July 20, 2015
what are compared
in the Opened version Problem
conditional expectation E(Y|X=x)
vs
value x

considering any x

random variable E(Y|X)
vs
random variable X
nothing
paradox E(Y|X=x) = (1/2)2x + (1/2)x/2.
∴ for any x E(Y|X=x) > x.
In other words, E(Y|X) > X.
If E(X) and E(Y) are finite,
E(Y) > E(X) .
under symmetry E(X) > E(Y) .
∴ E(X) > E(X) and E(Y) > E(Y) .
↑ revised on January 24, 2015
Let p be the event P = (a, 2a).
E(Y|p)=
(1/2)E(X/2|p ∧ X=2a) + (1/2)E(2X|p ∧ X=a).
∴ E(Y|p) =
(1/2)E(X/2|p) + (1/2)E(2X|p) =
1.25E(X|p)
> E(X|p).
If E(X) and E(Y) are finite,
E(Y) > E(X) .
under symmetry E(X) > E(Y) .
∴ E(X) > E(X) and E(Y) > E(Y) .
↑ revised on March 30, 2015
invariant the expectation formula must contain term of x/2 , and term of 2x the probabilities of the terms in the expectation formula
must be 1/2

In my perception , mathematicians seem to prefer a problem that is mathematically complicated and psychologically simple,  and philosophers seem to prefer a problem that is mathematically simple and psychologically complicated.

It is very hard to distinguish these two problems.
We can check the fact by reading the talk page of the article "Two envelopes problem" in the Engilish language Wikipedia.
A mathematician and some non-mathematicians are discussing about interpretation of the two envelopes problem.
In my perception, non-mathematicians seem not to be able to distinguish these two problems.
↑ This description was added on November 5, 2014, and revised on May 10, 2015.

Mystery of mind of advocators of the theory of "E = (1/2)2a + (1/2)a"

The "Inconsistent variable theory" and the "Not three amounts theory" is psychologically doubtful and accompanied by some illogical aspects.
(↑ Revised on December 30, 2015)

Indeed these theories induce many questions.

On July 7, 2015, I classified questions as follows.

These theories are unbecoming to "PARADOX".

This paragraph was revised on January 10, 2016.

Psychological phenomenon of inconsistent variable symbol is not realistic.

There are some Wikipedia articles which do not introduce such theories.

There are other opinions that are different but similar.

Advocators of the "Inconsistent variable theory" seem to have not felt any paradox themselves.

Advocators of the not three amounts theory seemed have felt standard paradox (DoublePairian's paradox) and have resolve SinglePairian's paradox..

These theories look like sophism.

Who wanted to spread such a paradox?

On July 20, 2015, this question was added.

Why did they pretend not to see the standard problem and paradox?

On July 10, 2015, this paragraph was added and revised on February 7, 2016.

Some hypotheses about the mind of the SinglePairians who conceive of the theory of "E = (1/2)2a + (1/2)a"

This was placed on February 9, 2015, as a refinement of paragraph "Some hypotheses about the proccess that SinglePairians conceive of the "Inconsistent variable theory" in their mind".
On May 23, 2015, the structure of this paragraph was changed.

Hypotheses about the paradox which they themselves felt

My main hypothesis
Other hypotheses

Hypotheses about the mental proccess of understanding the expectation formula

This paragraph was added on September 26, 2015, and revised on May 15, 2016.

My main hypothesis
Other hypotheses

Hypotheses about the trigger by which they get the SinglePairan's mental model

My main hypothesis
Other hypotheses

Hypotheses about whether they themselves used an inconsistent variable symbol or not

My main hypothesis
Other hypotheses

Hypotheses about the trigger by which they noticed the theory of "E = (1/2)2a + (1/2)a"

My main hypothesis
Other hypotheses

Hypotheses about what they think the root cause of the paradox

My main hypothesis
Other hypotheses

Hypotheses about why they want to advocate their opinions.

This paragraph was revised on October 11, 2015.

My main hypothesis
Other hypotheses

I think that it is not so difficult to let DivideThreeByTwoians change their opinion.

This paragraph was added March 7, 2016 and was revised on March 15, 2016.

I think if somebody does experiment using following wording of the two envelopes problem, participants of it will feel paradox. And I think if the result of the experiment is presented to DivideThreeByTwoian, many of them will change their thought.

Wording to be used in the experiment If the participants of this experiment feel paradox, the theory of "E = (1/2)a + (1/2)2a" can not resolve the paradox they feel.

Some hints by a Wrong explanation of the existance of a paradox.

On April 7, 2016, this paragraph was added. On May 14, 2016, this paragraph was revised.

Hint 1
"Opened virsion" problem frequentry explain the existence of the paradox with following wording.
Player A expects that the envelope which the opponent B has is more favorable. But simultaneously player B expects that the envelope which A has is more favorable. Why the two envelopes are more favorable than each other?

Hypothesis 1
We will easily be caught by the illusion of materialized expectation.
In other words, we often think expected value of the amount of money in the opposite envelope as a real amount of money.
So we frequently think that the expectations for each of the two envelopes must be same.


Hint 2
"Closed version" problem frequently explain the existence of the paradox with following wording.
After you change choice, you will get reason to change back. So you should continue change ad infinitum.

Hypothesis 2
We will easily be caught by the illusion of materialized expectation.
In other words, we often think expected value of the amount of money in the opposite envelope as a real amount of money.
So we frequently mistake expected value for an amount of money, and apply same expectation formula to it.


I guess that the illusion of materialized expectation is the source of the illusion of objective equivalence and the illusion of the objective expectation.
↑ Added on May 14, 2016.

Some hints by a DivideThreeByTwoian's opinion.

On February 14, 2016, this paragraph was added and was revised on February 27, 2016. On May 14, 2016, this paragraph was revised.

I had read a discussion which was made by two persons.
One is a DuublePairian and another is a DivideThreeByTwoian.
This discussion was held on late 2015 on the blog page of the former person.

After study of this DivideThreeByTwoian's opinon, I found some hints.

Hint 1
In the beginning of the discussion, the DivideThreeByTwoian presented two expectation formula.
The former was E=(1/2)2x + (1/2)(x/2) based on DoubleParirian's mental model, and the latter was E=(1/2)2a + (1/2)a based on SinglePairian's mental model

Hint 2
This DivideThreeByTwoian's opinion has big illogical aspects. Hint 3
I found a phrase "your approach was subjective" in this DivideThreeByTowian's post.

Hint 4 (← Added on March 6, 2016, and revised on March 12, 2016)
To my surprise, this DivideThreeByTwoian noticed that the probability P(X is greater | X=x) and P(X is lesser | X=x) cannot always be 1/2.  
But this finding could not let him try to correct probablity 1/2 in "E= (1/2)2x + (1/2)(x/2)".

Hint 5 (← Added on March 9, 2016)
This DoublePairian's main theme was the true calculation formula of the probability.
And the second theme was proof that with this calculation formula we can prove the equivalence of the two envelopes.
But this DivideThreeByTwoian did as follows.
Following hypotheses are suggested by these hints.

Hypothesis 1
DivideThreeByTwoians had been caught by the illusion of objective equivalence.  (← Revised on April 10, 2016)
And they felt a fictitious paradox by this illusion.

Hypothesis 2
It had no meaning for DivideThreeByTwoians whether he was DoublePairian or SinglePairian .

Some hints which was found in an article which was written by a DivideThreeByTwoian.

On May 14, 2016, this paragraph was added.

I found a hint in a paper written by a DivideThreeByTwoian.

Hint 1
His explanation contained following opinion.

The amount of money in the chosen envelope and the lesser amount of money, it is ambiguous which should be thought as random variable.
This ambiguity is the cause of the inconsistent use of the variable symbol.

But in my eyes, there is no ambiguity.
If he is a SinglePailian the former should be random variable, and if he is a DoublePairian the latter should be random variable.
His opinion might be a sophistry.

Hint 2
His explanation contained following opinion.

A value which is the condition of a conditional expectation has to have been observed

But in my eyes, this opinion had following defects.
Following hypothesis is suggested by these hints.

Hypothisis
For DivideThreeByTwoians, anything is not important but the fact that the equation "E=(1/2)2a + (1/2)a" is the correct expectation formula.
Therefore they carelessly explain psychological mechanism.

Characteristics which are common to a substantial proportion of DivideThreeByTwoian's opinions

On March 18, 2016, this paragraph was added.

I found that a substantial proportion of DivideThreeByTwoian's opinions have same characteristics such as follows.

Characteristic 1
With no logical reason they shift attention to the calculation formula "E = (1/2)2a + (1/2)a".
But they claim illogical reasons.
  • The sample space is comprised of "amount a chosen" and "amount 2a chosen".
  • Only two amounts of money are contained in the two envelopes.
  • Since the amount in chosen envelope is uncertain, referring to it is not appropriate.

Characteristic 2
They had never said that it is depending on the amount of money in the chosen envelope whether the expected value of the amount of money in the other envelope is lesser or greater than it.
This characteristic was added on March 31, 2016.

Characteristic 3
About mathematical resolution which says that it is wrong that probabilities are always 1/2, many of them claim it does not have enough generality.
This characteristic was added on April 9, 2016.

To my eyes these characteristics suggest following hypothesis.

DivideThreeByTwoians had been caught by the illusion of objective expectation. so they could not imagine that there can be various expectation of the amount of money in the other envelope.
Therefore they thought that if they found a paradox free expectation formula it must be the correct expectation formula.
And they tried to create their own expectation formula even though a expectation formula was presented in the problem.

Possible flow of thought in the mind of advocators of the theory of "E=(1/2)2a + (1/2)a"

On May 23, 2015, this paragraph was added, and revised on December 13, 2015, and on March 2, 2016.

I think that the following hypothesis is highly probable. Because the following facts support this opinion.
And I think that the following hypothesis is highly probable too. ↑ Revised on April 10, 2016.

Because the following fact supports this opinion.
According to the above I think that the following flows seem realistic.

Possible flow 1: They had been caught by the illusion of objective equivalence and the illusion of objective expectation.

I think this flow is most possible.
Questuion Answer
Which paradox did they themselves feel? They felt a fictitious paradox which was derived by the illusion of objective equivalence and the illusion of objective expectation.
How did they get the SinglePairan's mental model? When they found "E = (1/2)2a + (1/2)a" they became SinglePairian.
Did they themselves use an inconsistent variable symbol? No they did not.
What did let them notice the inconsistent use of a variable symbol? Analysis of the expectation formula from SinglePairian's point of view,
What did they think the root cause of paradox? DoublePairian's mental model

↑ Revised on April 10, 2016.


  ↑ Added on May 15, 2016.

I think that the following flows are not so possible.

Possible flow 2: They forgot that they were DoublPairians.

Questuion Answer
Which paradox did they themselves feel? DoublePairian's paradox.
How did they get the SinglePairan's mental model? They found that there were no paradox if they have the SinglePairian's mental model.
Did they themselves use an inconsistent variable symbol? No they did not.
What did let them notice the inconsistent use of a variable symbol? Analysis of the expectation formula from SinglePairian's point of view.
What did they think the root cause of paradox? DoublePairian's mental model

But I cannot throw away the following flow., too.

Possible flow 3: They made a fiction about the mind of the people who felt a paradox.

Questuion Answer
Which paradox did they themselves feel? They felt no paradox.
How did they get the SinglePairan's mental model? They could not imagine the DoublePairian's mental model.
Did they themselves use an inconsistent variable symbol? They did not use inconsistent variable symbol, because they did not understand the expectation formula.
What did let them notice the inconsistent use of a variable symbol? Analysis of the expectation formula from SinglePairian's point of view,
or
the thougt that
E = (1/2)2x + (1/2)(x/2).
is mistake of
E = (1/2)2a + (1/2)a.
← Added on July 4,2015.
What did they think the root cause of paradox? They had not any interest about the root cause.
(Revised on October 10, 2015)

Some psychological questions

This paragraph was totally revised on February 7, 2016.

Most important question

On which moment did they feel a paradox?

Another important question

Another questions

A table of the probable pattern of the advocator of the theory of "E = (1/2)2a + (1/2)a"

This paragraph was added on January 2, 2015.

Percentages in the following table mean my expectation.  (These percentages were revised on July 4, 2015, December 13, 201, February 7, 2016, March 2, 2016.)

Property Patern 1
self-deception
10%
Patern 2
sophism
10%
Patern 3
fictitious paradox
80%
Which phrase had let them feel paradox? The other envelope is profitable regardless of the amount of money in the chosen envelope.
(1/2)(x/2)+(1/2)2x > x
When he/she has understood the expectation formula,
which pairian has he/she been?
 DoublePairian 
(Revised on April 10, 2016)
Has he/she felt some paradox while he/she is a SinglePairian? No
 
Did they understand that the goal is to find any calculation which causes no paradox?
 
No No Yes

Psychological experiment to answer these questions

This paragraph was revised on November 5, 2014, February 7, 2016.

I hope somebody study these questions by psychological experiment.

Experiment using expectation formula

I think that the experiment might have following process.
I hope that the variation of the optional process of the experiment will answer some of my psychological question.

If more than 20 % participants answer that the ratio is 1 to 2,  then I will admit that the SinglePairians are not as strange as I think they are.

Experiment without expectation formula

I think that 'Inconsistent Variable' more easily appear in calculation of loss and gain than in calculation of expected value.
As follows without expectation formula, we can explain how a paradox occur.

Imagine you trade the envelopes.
If the amount of money in your envelope is the smaller amount then you will gain same amount of money.
If the amount of money in your envelope is the larger amount then you will lose half amount of money.
Therefore on the average you will gain half amount of money.

Some participants of such a experiment may point the mistake of such a explanation.
↑ This sentence was revised on March 29,2015.

Four 'Two Envelope Paradoxes'

On March 2 , 2016, title and contents of this paragraph were greatly revised.

The paradoxes of the two envelopes problem might be classified by the following aspects.
  resolver is
SinglePairian
resolver is
DoublePairian
 
The phrase
"(1/2)(x/2)+(1/2)2x > x"
has let the resolver feel paradox.
 
paradox by the illusion of objective expectation
(fictitious paradox)
paradox by the illusion of objective equivalence
(fictitious paradox)
The phrase
"The other envelope is profitable regardless of the amount of money in the chosen envelope."
has let the resolver feel paradox.
I think that the people who feel this kind of paradox are very few. standard paradox of the two envelopes problem

In Adition

I have written some pages about associated themes. 
Please see the page 'List of my pages written in English about the two envelopes problem'.


Appendix : Inconsistent Variable vs Confusion of Expected Ratio

We often confuse the ratio of expected values and expected value of the ratios.
I think it is the third cause of the Two Envelope Paradox, and I call it 'Confusion of Expected Ratio'.





I think that we are easy to have 'Confusion of Expected Ratio' rather than 'Inconsistent Variable'.
It is one of the reason why I doubt the Inconsistent variable theory.

Appendix : Inconsistent Variable in Calculation of Loss and Gain

Not using probability, We often calculate loss and gain.

Appendix : LesserOrGreaterian

Some theory says that people may create another mental model as follows,  and that it is the cause of the paradox that such people confuse the mean value of the lesser amount of money and the mean value of the amount in the chosen envelope.

type 1


type 2


type 3
← Added on January 10, 2015.



I think that people who have these mental model should be called "LesserOrGreaterian" or "LesserOrGreaterMeanValuean".

The section "Simple resolutions" in the article "Two envelopes problem" (At the revision 21:39, 23 November 2014) in the English language Wikipedia seemed to say as follows.
↑ Added on January 10, 2015. But I am suspicious of such a theory.
I can not imagine that there can be one who can imagine such complicated mental model and make such a confusion.
To my eyes this theory is only distortion.

Some references for the remaining mathematical problems



Return to the list of my pages written in English about the two envelopes problem